I believe it had something to do with an expiring contract. Im not well versed in oil but read a headline alluding to that.
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- Thread starter SoapyCy
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This is ok but IMO you are putting a lot of eggs in one basket. Being heavily invested in one company like that poses a lot of investment risk, and that one company you would be heavily invested in is also your source of cash flow.
Common Sense on Mutual Funds by Vanguard founder John Bogle
You're not wrong about it being too many eggs in a basket. I try to limit myself to about 10 shares of my company stock before moving things around a little right now I'm sitting at about 7 shares of my employers stock. Once that hits 10 I'll probably trade half of them and invest in a few other things. I like doing it this way because I don't really miss the money since it comes straight out of my paycheck. If I hit it big on a stock, I'll sell it off and buy a new tool or something and if I loose my ass on something it's not the end of the world.
Hit on a couple stocks that are typically good dividend stocks. Usually I don't care about dividends, but with dividends placing in less than a month for these, I'm not sure what to do. I could see a nice pop if they are anywhere close this quarter. One hasn't lowered their dividend in like 20 years, so I'm really curious on that one.
I moved 100% of my 401(k) into Enron stock. Easy street here I come!
With time you will find your own style of investing and that’s is very important. You have to find a strategy that fits you. In my opinion where most investors fail is on the psychological portion of it, meaning people make wrong decisions that driven by emotions instead of facts and or probabilities.
With that being said I think the best place to start is by reading some of Meb Faber’s book, especially the ones about asset allocation. You can download their PDFs for free on his website and they are all fairly short reads. Meb does a good job of laying out some portfolio strategies that are very rule based, which is important in controlling your emotions during the markets ups and downs.
Once you have a base investing strategy/portfolio, sounds like you will also be interested in doing some individual stock picks. At this point I’d highly recommend you keep these individual picks as a very small portion of your overall investment. Especially as you still new and learning, maybe no more than 10% of your portfolio.
As far as individual picks go, I am big value investor believer. So I’d recommend reading some Peter Lynch, Books about Buffet, etc. at some point I am sure you will run into a book called “The Intelligent Investor” I found it to be a pretty hard read, but a good one. I’d save it and read it much later once you are more comfortable with financial terms. Through you this process you will likely start to learn about some of the successful value guys.
Podcasts, I really like the Curious Investor by AQR and We Study Billionaires by the Investor’s Podcast Network.
Feel free to PM me anytime you have questions and what not. I am always looking for folks to talk investing hahaha.
Look at the June contract, that is where most of the volume is happening. That is down about 8-10 percent.
This gives me an uncomfortable chuckle. When I started working corporate out of college and had no idea about anything, I started pumping into the ESPP. Put in about $14k. Walked away with $800 four years later. Lesson learned. Was put off investing for quite awhile after that. I'd be in a lot better position now if I had any understanding of what I was doing at the time.
Down, but hopefully not too much cause I moved some HSA funds to money market which will go through just before close. Up 17% (on a small amount) in the month so not too shabby for some random mutual funds.
Part of that is because the contract will roll tomorrow so the prices will look like they are way up tomorrow. Although the front month is being obliterated today. You can see the front month (May 2020) is destroyed at 4.77 but the June 2020 is still $22.35. This really is indicating that there is no storage left for crude oil.
https://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude.html
And the reason this tells you there is no storage left is because you can make easy profits. Buy the May Oil at $4 a barrel and store it till June and sell at $22 / barrel. Easy, unless you have no place to put the stuff.
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